Five Indonesians on ‘Forbes’ billionaire list

Everybody is affected by the present global financial crisis. But not Indonesians Michael Hartono and brother R. Budi Hartono, owners of the country’s second-largest cigarette company, who made it into the annual list of billionaires, as published by Forbes magazine.
Though the wealth of the Hartono brothers was trimmed from US$2 billion in 2008 to $1.7 billion in 2009 due to the global financial crisis, they jumped to 430th position on the 2009 Forbes World’s Billionaires list from 605 last year.
Forbes magazine released the names of the world’s 793 richest people on Wednesday, five of whom were Indonesian businessmen. Topping the list was computer czar and Microsoft Corporation founder Bill Gates, followed by property and casualty insurance company Berkshire Hathaway chairman Warren Buffett, both from the United States.
Besides owning clove cigarette company PT Djarum, Michael, 69, and Budi, 68, also own shares in Indonesia’s largest bank — Bank Central Asia (BCA) — and the Grand Indonesia luxury shopping mall, office building and hotel complex.
The brothers have surpassed Singapore-based tycoon Sukanto Tanoto, 59, ranked 450th on the list with $1.6 billion in wealth.
Forbes listed Sukanto, owner of paper, construction and palm oil industries under the Raja Garuda Mas Group, as the richest man in Indonesia in 2008, with $3.8 billion in wealth.
“The cigarette business has shown greater resilience since the 1998 economic crisis, and the trend has continued to date. It can rely much on domestic consumption, at a time when the export-driven sector, such as commodities, has slowed down as global demand shrinks,” said University of Indonesia economist Berly Martawardaya.
Forbes also listed Martua Sitorus, 49, owner of palm oil company Wilmar International Group, in 522nd place with $1.4 billion in wealth. The next Indonesian on the list is the 701st-ranked Peter Sondakh, 57, with $1 billion in interests in the telecommunications, retail and hotel businesses.
“It’s a great thing that we still have Indonesian businessmen in the list, despite the crisis,” said M.S. Hidayat, chairman of the Indonesian Chambers of Commerce and Industry (Kadin).
This year, the world’s billionaires have an average net worth of $3 billion, down 23 percent in 12 months. The world now has 793 billionaires, down from 1,125 a year ago, Forbes reported.
Bill Gates lost $18 billion, but regained his title as the world’s richest man, even as the world’s richest are also a lot poorer, Forbes said.

Forbes world's richestRank
Name Citizenship Net worth ($billion)
1 William Gates III US 40.0
2 Warren Buffett US 37.0
3 Carlos S. Helu Mexico 35.0
4 Lawrence Ellison US 22.5
5 Ingvar Kamprad Sweden 22

...

430 Michael Hartono Indonesia 1.7
430 R. Budi Hartono Indonesia 1.7
450 Sukanto Tanoto Indonesia 1.6
522 Martua Sitorus Indonesia 1.4
701 Peter Sondakh Indonesia 1

Sources: Jakarta Post, Forbes

Economic Projection by EIU

Indonesia's annual average real GDP growth rate is expected to fall to 4.1% in 2009-13, from 5.7% in 2004-08, as external demand for the country's exports weakens, domestic consumption and investment slow, and foreign investment remains sluggish. Consumer price inflation is expected to average 5.7% a year in the forecast period. The rate of price increases will moderate between 2010 and 2013 as upward pressure on wages remains weak (owing to high levels of unemployment) and as global commodity prices stabilise. The current account will remain in surplus in 2009-13 and the ratio of external debt to GDP will fall further.

The monetary policy of Bank Indonesia (the central bank) will be focused on preventing a sharp depreciation of the rupiah and setting interest rates at a level conducive to economic growth. Although access to finance will be limited in 2009-10, greatly reduced public debt ratios have given the government some fiscal freedom, while the fall in global oil prices has led to a decrease in the cost of fuel subsidies.

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Sources: Economist Inteligent Unit